Dear Investors,
We are pleased to present a market overview and the performance results of OTP Capital’s mutual investment funds for April 2025.
Overall Economic Situation in Ukraine
In April 2025, consumer inflation in Ukraine reached a new peak of 14.6% year-on-year. Despite this, the National Bank of Ukraine (NBU) kept the key policy rate unchanged at 15.5%, considering that inflation had already peaked and is expected to decline going forward. The main drivers of inflation remained administratively regulated prices, fuel, and raw food products.
During the first half of April, supply and demand in the foreign exchange market were balanced. However, toward the end of the month, demand began to exceed supply. NBU foreign exchange interventions increased from USD 2.06 billion in March to USD 2.24 billion in April, leading to a depreciation of the hryvnia:
- Official exchange rate: from UAH 41.37/USD to UAH 41.58/USD
- Cash market rate: from UAH 41.67/USD to UAH 41.72/USD
Hryvnia Investments
The Ministry of Finance kept yields on hryvnia-denominated government bonds (OVDPs) at primary auctions at March levels:
- 1.5-year bonds: 16.35%
- 2-year bonds: 17.1%
- 3-year bonds: 17.8%
Term deposit rates in the banking sector also remained unchanged compared to March, ranging from 10.5% to 14.5%.
Foreign Currency Investments
Yields on USD-denominated OVDPs declined from 4.6–4.7% to 4.17–4.25% due to strong demand and limited supply. The Ministry of Finance set a placement limit of USD 200 million, while total demand exceeded USD 1 billion.
On the secondary market, yields on foreign-currency OVDPs did not exceed 2.5% in USD and 1% in EUR.
Currency supply and demand remained balanced during the first half of April, but demand began to dominate toward the end of the month. Limited primary market supply from the Ministry of Finance increased demand in the secondary market. At the same time, NBU interventions did not increase significantly compared to March, which had a negative impact on the hryvnia exchange rate.
Results of Funds Managed by OTP Capital
OTP Classic Fund
The fund sold OVDPs totaling UAH 30.7 million and purchased UAH 17.4 million of new government bonds with higher yields. The deposit portion of the portfolio amounted to UAH 2.7 million, placed with Universal Bank.
- Performance in April: 1.1%
- Performance over the last 365 days: 14.8%
OTP Kids Fund
The fund sold OVDPs totaling UAH 50.1 million and purchased UAH 76.1 million of new government bonds with higher yields.
- Performance in April: 1.6%
- Performance over the last 365 days: 19.3%
OTP Equity Fund
The fund reallocated assets into short-term deposits at maximum available rates:
- Ukreximbank: UAH 1.0 million
- Universal Bank: UAH 0.5 million
- Ukrgasbank: UAH 1.0 million
Share prices in the portfolio remained unchanged during the month.
- Performance in April: 0.5%
- Performance over the last 365 days: 39.9%
OTP Valutnyi Fund
Due to a decline in the value of Eurobonds, the fund recorded losses during the month. No active portfolio operations were carried out.
- Performance in April: -3.5%
- Performance over the last 365 days: 15.8%
